A-share market closing review | Index trend differentiation! Significant increase in trading volume, technology sector performing strongly

Today, the A-share market showed differentiation, with the Growth Enterprise Index leading the gains. Over 3400 stocks in the market were in the green, with growth stocks experiencing a rebound. The market turnover volume exceeded one trillion yuan compared to the previous trading day. According to Securities China, since April, the performance of growth stocks has not been outstanding compared to bank-led dividends. The market has also shown frequent style swings, where a rise in dividends often corresponds to a adjustment in growth, and an adjustment in dividends often triggers a growth rebound. Analysts believe that whether the market style will completely change depends on three main factors: 1) a thorough improvement in the fundamentals of growth stocks, 2) the expectation of a sustained rise in government bond yields, and 3) continued loose market liquidity. In terms of market performance, the technology sector was strong, with Siasun Robot & Automation concept stocks surging in the afternoon, and several stocks including Jiangsu NanFang Precision hitting the limit up. AI industry chains such as computing power and AI applications were on the rise, with Hongbo Co., Ltd. achieving four consecutive limit up days. Chip stocks rebounded, with Rockchip Electronics hitting the limit up, and the Huawei industrial chain was active, with stocks like Shijiazhuang ChangShan BeiMing Technology hitting the limit up. The photovoltaic sector continued to strengthen, with Hongyuan Green Energy hitting the limit up. Consumer goods stocks rose again, with beauty, pet, and retail sectors seeing repeated activity. On the downside, high dividend stocks fell, with the banking sector leading the declines, with Hua Xia Bank falling over 8%. Looking ahead, CaiXin Securities stated that after the "May Day" holiday, following overseas tariff disruptions, increased domestic policy efforts, and the release of annual and quarterly reports from listed companies, the market is expected to move towards a structurally upward trend after the consolidation phase. By the close, the Shanghai Composite Index fell 0.23% to 3279.03 points, with a turnover of 505.6 billion yuan; the Shenzhen Component Index rose 0.51% to 9899.82 points, with a turnover of 663.8 billion yuan. The Growth Enterprise Index rose 0.83% to 1948.03 points. In terms of fund flows, today's main funds focused on IT services, semiconductors, and consumer electronics sectors. The top stocks with net inflows from main players included Shijiazhuang ChangShan BeiMing Technology, Rockchip Electronics, and Toread Holdings Group. News recap: 1. World Gold Council: Global gold demand in Q1 reaches highest level since 2016 2. China's manufacturing Purchasing Managers' Index (PMI) in April was 49%, down 1.5 percentage points from the previous month 3. Chongqing: Plans to issue child-rearing subsidies according to national deployment; encourages counties to explore pilot programs for spring and autumn vacations in primary and secondary schools Market analysis: CaiXin Securities predicts that the market may continue to consolidate before the "May Day" holiday, with defensive strategies as the main approach. After the holiday, with the fading of overseas tariff disturbances, increased domestic policy efforts, and the release of annual and quarterly reports from listed companies, the market is expected to enter a structurally upward phase. In May, as the market focuses on expanding domestic demand and the AI industry trend, investors can consider benefiting from the consumer sector (especially service consumption) and high-dividend defensive sectors. In the medium to long term, focusing on value in A-shares, such as the AI industry chain with high performance and opportunities for independent controllable low cost."Bonjour, comment a va?" "Hello, how are you?"2. Galaxy Securities: Post-holiday market style may switch, possibly re-entering speculative state of thematic stocks. Galaxy Securities stated that although the mid-term direction has not changed, the urgency of short-term policy hedging has decreased, leading to an increase in the market's independent pricing power. This may cause some changes in the internal fund structure, as the trend of the index is no longer a "bulldozer" market, and excess returns of weighted stocks are beginning to decline. Small and medium-sized stocks have shown better performance during the week, and it is worth paying attention to whether this trend will continue. Additionally, considering the rhythm of performance disclosure and the upcoming holiday season, a style switch may occur post-holiday, and the market may once again enter a speculative state of thematic stocks. In the process of fund structure changes, one should be cautious of the risks of stocks being artificially inflated by pure funds. 3. EB SECURITIES: Market likely to be characterized by low trading volume and caution, looking for new opportunities. EB SECURITIES mentioned that as the holiday approaches, some funds are taking profits, leading to adjustments in previously strong sectors such as banks and utilities. In the market, there is a general rebound and recovery in small thematic stocks due to the seesaw effect. Looking ahead, with only one trading day left before the May Day holiday, and considering the uncertainty of the holiday period, the market is likely to be characterized by low trading volume and caution. After the adjustment in blue-chip sectors such as banks and utilities, the market will be "looking for" new opportunities.